September 20, 2019 by Xavier
An economist of the Bank for International Settlements (BIS) has proposed the use of the technology of the big registry distributed (DLT) to oversee the risks of financial sector.
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A compliance solution at a low cost
Through a working paper, by Raphael Auer offers integrated monitoring of the financial markets through the DLT, and the manner of the automatic monitoring of the crypto-market.
The DLT offers a new form of transparency and credibility of the data with supervision integrated which puts forward the machine learning and artificial intelligence (AI).
Thus, to properly establish a regulatory basis for decentralized markets, it is essential to rely on a trusted infallible by deploying methods that exclude the intervention of third persons.
According to the report :
“If the markets based on the DLT had to be developed, it would change the way assets are traded and how they are conditioned in complex financial products. Given that the information contained on the Blockchain is verified by economic consensus that decentralized, they could replace the current processes of delivery and verification of the data “.
Nevertheless, it is necessary to establish frameworks auxiliary that govern the markets distributed, and infrastructure to the regulatory authorities and the legislators.
The great advantage in the use of the integrated supervision would be the confidentiality of financial transactions, which does not prevent the control authority and the companies to be exposed to finance.
The DLT attracts more businesses
According to the BIS, a quarantine of central banks is exploring the use of technology Blockchain in the field of finance, ranging from the conquest of new markets up to the issues of security of payments.
International companies also recognize the potential of this technology. For example, the Deutsche Borse, Swisscom and the swiss and singaporean Sygnum have signed strategic partnerships to support the industry Blockchain.
“The Blockchain may eventually reshape the global financial markets,” they said.
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